Chart of The Day – Nadaq100

Nasdaq 100 (US100) futures are gaining nearly 1% today. While they have rebounded somewhat from yesterday’s sell-off low around 17,600 points, it is hard to speak of a radical improvement in sentiment. The index is still struggling to break above resistance at 18,000 points and is currently trading near the 38.2% Fibonacci retracement level of the 2022 upward wave.

• Yesterday, Trump announced that he would impose 50% tariffs on China starting April 9 if China does not withdraw its 32% retaliatory tariffs. Since then, we have seen no significant response from China apart from yesterday’s statement from the Ministry of Commerce, emphasizing that China will never accept “coercive” policies from the United States.
• As long as the threat of 50% tariffs on China (which would raise the total tariff burden to 70%) remains on the table — and the risk persists that Donald Trump is not “bluffing” — demand for market hedging is likely to stay high. This would explain the relatively elevated VIX, hovering around 32 points. Meanwhile, major U.S. indices, including US100 — which is particularly sensitive to potential trade retaliation from China — may continue to struggle to break above key resistance levels.
• Earnings season in the U.S. kicks off on Friday, with American banks expected to broadly comment on the state of U.S. consumers. Consumer credit data reported yesterday surprised with a decline of $0.8 billion, compared to positive expectations of $15 billion. Several surveys suggest consumers may have reduced spending in recent weeks. This makes Nasdaq 100 particularly sensitive — both to positive and negative commentary from the US banks. Until then, the focus remains on the “trade war” and any potential “deals” Trump may announce as negotiations with several countries continue.

US100 (D1 interval)

The 200-day and 50-day EMA averages are on track to form a “death cross” on the daily chart, signaling a potential longer-term trend reversal. The index is trading about 10% below its 200-day EMA (red line). A key zone for bulls to reclaim lies around 19,300–19,500 points, where significant past price reactions occurred. A deeper sell-off and further panic could bring a test of the 15,000-point area, corresponding to the 61.8% Fibonacci retracement. In the short term, the greatest risk appears to be the possible escalation of tariffs on China from 34% to 50%, which would raise the total tariff burden to 70%, further complicating the already challenging environment for U.S. tech companies and affecting the broader inflation outlook in the United States.

Source: xStation5

The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.

Register a Revolut Business Account